Texas Department of Agriculture Office of Rural Affairs LCRA Community and Economic Development Open House December 16, 2011 Michael West Todd Staples, Commissioner
Rural Economic Development Resources• Federal – USDA, EDA, SBA• State – Governor’s Office – Texas Department of Agriculture – Texas Workforce Commission• Regional and Local – COGs – Chambers, Small Business Development Centers, etc.
Trade and Business Development• Financial – TCF – J4T – TAFA• Non- Financial – GoTexan Marketing – CRC – Certified Retirement Community – TRIP – Texas Rural Intern Program – Broadband Mapping
Texas Capital Fundfunded with Community DevelopmentBlock Grant (CDBG) monies from the U.S.Department of Housing and UrbanDevelopment (HUD)
2011 TCF Advantages• A new short form application• Open application process• Awards Monthly
TCF Job Creation Programs• Infrastructure Development – Funds for public/private infrastructure – Encourages new business development and expansion• Real Estate Development – Funds for Acquisition, New Construction or Rehabilitation – 0% Interest Loan up to 20 years• Funding $50,000 to $1.5 Million
TCF Rural Downtowns• Main Street Development• Downtown Revitalization – Awards from $50,000 to $150,000 – Funds for public infrastructure in applicants designated downtown area – Aids in eliminating handicap barriers and deteriorated conditions in downtown areas
Jobs For Texas• Jobs For Texas, or J4T, is an innovative program designed to increase small businesses’ access to capital and enable private entrepreneurs to make market-driven decisions to grow jobs.• $46.5 million award from U.S. Department of the Treasury as part of the State Small Business Credit Initiative (SSBCI).• Anywhere in Texas!!!!!!
Jobs For Texas• J4T – Loan Guarantee – $10 Million – Your Local Lender • Bank, Credit Union, CDFI – 50% Loan Guarantee• J4T – Venture Capital – $27 Million – Two Partner VC Firms • Advanced Capital Partners • Enhanced Capital
Texas Agricultural Finance Authority• Maybe you are not a Farmer/Rancher, but I bet you Know One!• And your rural area depends also on their success.• Financial Resources• Grant Funds
TAFA Overview Agricultural Loan Guarantee (ALG) Interest Rate Reduction (IRR) Young Farmer Interest Rate Reduction (YFIRR) Young Farmer Grant (YFG)
TEXAS CDBGThe Texas Community Development BlockGrant Program is now in the Office of RuralAffairs in the Texas Department ofAgriculture.
CDBG Replaced 8 Programs!• Urban Renewal• Open Space• Neighborhood Development• Neighborhood Facilities• Public Facilities• Historic Preservation• Model Cities• Water and Sewer Grants
CDBG Primary Objective• Development of viable “urban” communities by providing: • Decent Housing • A suitable living environment; and • Expanding economic opportunities• The primary beneficiaries of the program are persons of low/moderate income.
“Block Grant”• CDBG funds are allocated by HUD as a “block grant” based on a HUD formula. – Based on population and poverty – Flexibility
CDBG – National ObjectivesAll proposed CDBG activities must meet either: 1. Principally benefit low- and moderate-income persons; 2. Aid in the elimination of slums or blight; or 3. Meet other community development needs of particular urgency which represent an immediate threat to the health and safety of residents of the community
Ineligible Activities• Construction of buildings and facilities used for the general conduct of government (e.g. city halls, courthouses, etc.);• New housing construction, except under very limited circumstances;• The financing of political activities;• Purchases of construction equipment (generally);• Most operation and maintenance expenses
CDBG - HistoryHousing and Community Development Act of 1974 The introduction of the CDBG program in 1974 signaled a move away from individual categorized federal development assistance programs towards the block Community Development Block Grant (CDBG) grant model, which gives communities broad latitude in using funds for a variety of development activities. The Omnibus Budget Reconciliation Act of 1981 authorized states to administer the CDBG programs.US Department of Housing and Urban Development (HUD)
State CDBG Programs• States are given wide latitude in the design/implementation of their programs.• Maximum Feasible Deference: “Secretary will give maximum feasible deference to the State’s interpretation of the statutory requirements and the requirements of the regulation...” (24 CFR Part 570.480(c))
Eligible Applicants• Cities < 50,000 in population• Counties < 200,000 in population
State CDBG Program in Texas Largest “State CDBG” program in the nation (based on dollars granted) Serves: 1,015 cities 244 counties
State CDBG – Fund Allocation FY11 Allocation: $66,604,737
Community Development (CD) Fund• Finances many different activities, although most funds are for Water /Waste Water - Public Facilities• Largest Fund Category in TXCDBG• Applications are taken every two years. Applications are ranked for two years of TxCDBG funding.
Regional Review Committees• One Regional Review Committee (RRC) in each of the 24 COG regions.• RRC members establish regional priorities and the RRC’s application scoring factors.• The TxCDBG state staff (TDA) score is only 10% of the RRC total score.
Colonia Fund• Colonia Construction Fund – generally water/sewer/septic tanks/service connections.• Colonia Economically Distressed Areas Program Fund• Colonia Planning Fund• Colonia Self-Help Centers Fund (2.5%) – Administered by the Texas Department of Housing and Community Affairs (TDHCA) through an Inter-Agency Agreement with TDA
Disaster / Urgent Need Fund• Federal Declarations – TxCDBG funds the county or city’s source of funds for the FEMA required 25% match.• State Declarations – TxCDBG is the only source of disaster relief assistance for eligible counties & cities.
Small Towns Environment Program• “Self-Help” Fund – driven by local community volunteers performing work on the project.
Planning and Capacity Building Fund• Provides funds for cities and counties to prepare planning activities that assess local needs, develop strategies to address local needs, & build or improve local capacity.
For Assistance, Please Contact: Texas Department of Agriculture Michael West 512-463-4320 finance@TexasAgriculture.gov Web site: www.TexasAgriculture.gov
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.